Are You Eligible For Any Of These Tax Credits?Written by Richard A. Chapo
Continued from page 1
Education Credits There are two credits available, Hope Credit and Lifetime Learning Credit, for people who pay higher education costs. The Hope Credit is for payment of first two years of tuition and related expenses for an eligible student for whom taxpayer claims an exemption on tax return. The Lifetime Learning Credit is available for all post-secondary education for an unlimited number of years. A taxpayer cannot claim both credits for same student in one year. For more information, see Publication 970, Tax Benefits for Education. Retirement Savings Contribution Credit Eligible individuals may be able to claim a credit for a percentage of their qualified retirement savings contributions, such as contributions to a traditional or Roth IRA or salary reduction contributions to a SEP or SIMPLE plan. To be eligible, you must be at least age 18 at end of year and not a student or an individual for whom someone else claims a personal exemption. Also, your adjusted gross income (AGI) must be below a certain amount. For more information, see chapter four in Publication 590, Individual Retirement Arrangements (IRAs).
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Discovery tax strategies and deductions in our tax articles section.
| | Reservists, Enlistees May Get Deferral of Back TaxesWritten by Richard A. Chapo
Continued from page 1
Combat Areas The following areas of have been designated as combat areas. 1. Afghanistan and airspace above was designated a combat zone effective Sept. 19, 2001. 2. The Federal Republic of Yugoslavia (Serbia/Montenegro) 3. Albania 4. Bosnia and Herzegovina 5. Croatia 6. Macedonia 7. The Adriatic Sea 8. The Ionian Sea — north of 39th parallel 9. The Persian Gulf 10. The Red Sea 11. The Gulf of Oman 12. The part of Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude 13. The Gulf of Aden 14. The total land areas of Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates 15. Incerlik Air Base in Turkey, effective Sept. 21, 2001 16. Pakistan, Tajikistan and Jordan, effective Sept. 19, 2001 17. Uzbekistan and Kyrgyzstan, effective Oct. 1, 2001 18. The Philippines, effective Jan. 9, 2002 19. Yemen, effective April 10, 2002 20. Djibouti, effective July 1, 2002 While deferring back taxes is a helpful notion, a better method would be simply to waive all taxes on military personnel.
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Discovery tax strategies and deductions in our tax articles section.
|
